C&E Services, Inc. (2031ZA22C00005)

B-420374.3,B-420374.4 Jun 21, 2022 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights C&E Services, Inc., of Vienna, Virginia, protests the decision by the Department of the Treasury, Bureau of Engraving and Printing (BEP), and the Small Business Administration (SBA), to place contract No. 2031ZA22C00005 for maintenance and support services in SBA's 8(a) business development program, and the award of that contract to Kadiak, LLC, of Chantilly, Virginia. C&E, a small business contractor that has been performing these services, contends that the SBA did not consider all relevant information in determining the adverse impact on C&E, which results from placing the requirement in the 8(a) program. We deny the protest. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: C&E Services, Inc. File: B-420374.3; B-420374.4 Date: June 21, 2022 Kevin P. Connelly, Esq., Kelly Buroker, Esq., and Tamara Droubi, Esq., Vedder Price PC, for the protester. Devon E. Hewitt, Esq., Protorae Law PLLC, for Kadiak, LLC, the intervenor. Katherine Allen, Esq., and Rachel McGuane, Esq., Department of the Treasury; and Mark Hagedorn, Esq., and John W. Klein, Esq., Small Business Administration, for the agencies. Mary G. Curcio, Esq., and Jonathan L. Kang, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST In conducting an analysis to determine if placing a requirement in the Small Business Administration 8(a) business development program would have an adverse impact on a small business, the Small Business Administration reasonably considered invoices for work performed and supplies and equipment purchased during relevant time period, instead of the total dollar amount of invoices submitted during that time period. DECISION C&E Services, Inc., of Vienna, Virginia, protests the decision by the Department of the Treasury, Bureau of Engraving and Printing (BEP), and the Small Business Administration (SBA), to place contract No. 2031ZA22C00005 for maintenance and support services in SBA’s 8(a) business development program, and the award of that contract to Kadiak, LLC, of Chantilly, Virginia. C&E, a small business contractor that has been performing these services, contends that the SBA did not consider all relevant information in determining the adverse impact on C&E, which results from placing the requirement in the 8(a) program.[1] We deny the protest. BACKGROUND Section 8(a) of the Small Business Act, 15 U.S.C. § 637(a), authorizes the SBA to contract with other government agencies, and to subcontract the performance of those contracts to qualified 8(a) program participants. Pursuant to SBA regulations, a procuring activity must generally offer and the SBA must accept a procurement requirement for award as an 8(a) contract. See 13 C.F.R. § 124.501-504. The Act offers broad discretion to the SBA and federal procuring activities in selecting procurement requirements that are suitable for award under the 8(a) program. 15 U.S.C. § 637(a) (stating that a contracting officer is authorized to issue a contract to the SBA for “any specific Government procurement” as long as the SBA is “competent and responsible to perform”). SBA has promulgated regulations at 13 C.F.R. § 124.504, which set forth limitations on its authority to accept requirements into the 8(a) program under certain circumstances. Relevant to C&E’s protest, SBA will not accept a procurement for award as an 8(a) contract where the SBA has made a written determination that such acceptance would have an adverse impact on an individual small business. Id. § 124.504(c). The adverse impact inquiry is intended to protect small businesses performing prime federal contracts awarded outside the 8(a) program.[2] The contract at issue here is for maintenance and support services for the BEP’s eastern currency facility wastewater pretreatment plant in Washington, D.C. C&E, a small business, has performed the services for the past 24 years. On August 24, 2021, the BEP offered the requirement to the SBA 8(a) business development program on behalf of Kadiak. Memorandum of Law at 2. The SBA accepted the offer on September 8, and the contract was awarded to Kadiak on November 1. Id. On November 15, the BEP informed C&E that a new contract, which would begin on January 1, 2022, had been awarded to Kadiak under the Small Business 8(a) program. On December 15, the contracting officer requested that the SBA review its acceptance of the wastewater treatment requirement into the 8(a) program, and perform an adverse impact analysis if one was required. Agency Report (AR), Exh.15, SBA email to contract specialist agreeing to perform adverse impact analysis.